AFM202 Chapter 2: C2 Ethical Behaviour, Professional Contact, Potential Breaches
Document Summary
Auditors have a set of moral, professional and legal responsibilities to society: auditor could be charged criminally and civilly. Auditors unlike other professionals have a 3 party accountability relationship: work for best interest of third party, not client (not acting in best interest of corporation, but shareholders that we don"t know who they are) Independence (204): rules if you are in public practice. In public practice (when you are working on behalf of the public) Cpa shall be and remain independent, remain free of any influence, interest or relationship. External forces (no pressure/environment that would make you biased) Not only must an accountant be independent, must also appear to be independent to others: mental state (difficult to prove) Independence is appearance is governed by legislation and rules of professional conduct: what a third part would perceive you to be. Auditor must consider the 5 facets of independence before accepting or continuing an engagement.